Japan tells world to stand up to China or face consequences

As mentioned here several times, in the future look for Asia to be united as a regional bloc. Abe’s statement confirms it could very well be heading that way. Both Japan and China will likely have escalated tensions (and possibly a few skirmishes) until Japan realizes that the United States, which is rotting and deteriorating from within, will no longer have capability or the will to back Japan in future conflicts. So, instead of risking all-out war between the two nations, both will come to a mutual understanding and forge solid ties. When these two have united, expect the rest of Asia to follow suit.

Davos (Switzerland) (AFP) – Japan on Wednesday told the world it must stand up to an increasingly assertive China or risk a regional conflict with catastrophic economic consequences.

In a landmark speech to the World Economic Forum in Davos, Japanese Prime Minister Shinzo Abe issued what amounted to an appeal for international support in a potentially explosive dispute with its superpower neighbour over islands in the East China Sea.

“We must restrain military expansion in Asia … which otherwise could go unchecked,” Abe told the annual meeting of global business and political leaders, which Chinese Foreign Minister Wang Yi is due to attend on Friday. Continue reading

Iran: We did not agree to dismantle anything

Iran’s foreign minister accused the US of mischaracterizing the terms of an interim nuclear deal that went into effect on Monday.

We did not agree to dismantle anything,” Mohammad Javad Zarif told CNN in an interview on Wednesday, charging that the Obama administration had created a false impression in the language it used to describe the six-month agreement. Continue reading

Germany’s ascendancy over Europe will prove short-lived

Although the article has a point and the population is truly in decline, Germany should not be counted out. Germans have the know-how, a very modern infrastructure, are still the most industrious and forward thinking people with a vision that no other on the European continent has or can be compared to. It didn’t literally give its manufacturing base to the Chinese.

Germany has peaked. Its hegemony in Europe is a “power illusion”, a confluence of fleeting advantages soon to be overwhelmed by the delayed effect of error and the crush of historic forces.

If demography is destiny, it may be clear within five years that ageing Germany is going the way of Japan. Within 20 years it may equally be clear France and Britain are regaining their 19th century role as the two dominant powers of Europe, albeit a diminished prize. Continue reading

China Just Threatened a Currency War if the Fed Doesn’t Stop Printing

The tension between Central Banks that we noted yesterday continues to worsen. This time it was China and the EU, not just Germany, that fired warning shots at the US Fed.

A senior Chinese official said on Friday that the United States should cut back on printing money to stimulate its economy if the world is to have confidence in the dollar.

Asked whether he was worried about the dollar, the chairman of China’s sovereign wealth fund, the China Investment Corporation, Jin Liqun, told the World Economic Forum in Davos: “I am a little bit worried.” Continue reading

British Prime Minister David Cameron says he does not want a country called Europe

“To try and shoehorn countries into a centralised political union would be a great mistake and Britain would not be a part of it,” he said in a speech at the World Economic Forum in the Swiss resort of Davos.

“If you mean that Europe has to be a political union, a country called Europe, then I disagree,” said Mr Cameron, who insisted he is arguing for a more flexible EU – not to walk out on it. Continue reading